Galena Mine’s luster fades

One of the Silver Valley’s last remaining operating mines could be on the market this spring.

Coeur d’Alene Mines Corp. announced late Tuesday that it is reviewing the future of the Galena Mine, including a possible sale.

The underground mine near Silverton, Idaho, employs 185 people in one of the state’s most economically depressed regions. Average wages for a mining job are more than $40,000.

Despite a steady rise in silver prices, the Galena lost more than $1 million during the first nine months of 2005. Coeur d’Alene Mines is evaluating whether it would be better to sell the mine and reinvest the money in more profitable South American operations, said Scott Lamb, company spokesman.

Mining silver in the Galena is grueling, labor-intensive work. Workers drill and blast narrow veins of ore that show up as rust-colored streaks in quartzite rock.

Many U.S. companies, include Coeur d’Alene Mines, are banking on a future in Latin America, where costs are lower. Coeur d’Alene Mines has operating mines in Chile and Argentina, and one under construction in Bolivia.

Ken Snyder left the Galena six months ago, amid concerns about the mine’s future. He was part of a team exploring for new ore bodies, and said he got a sense that the Galena’s star was fading. Silver production, which peaked at 5.3 million ounces in 2002, dropped to 1.7 million ounces during the first nine months of 2005.

“It was the best company I ever worked for, but I didn’t see the silver reserves,” Snyder said.

He was able to get a job at the Lucky Friday – the valley’s only other operating silver mine.

Fred Stepro Jr. got word of the possible sale Tuesday during his shift. He’s worked at the Galena for nearly 20 years, repairing the cables that transport miners to and from the surface.

“I’ll ride it out, and see what happens,” he said. At 57, Stepro is nearing retirement, but he has a son who also works at the mine.

Company officials expect to finish their review of the Galena before the end of March.

“The market for silver is pretty robust right now,” Lamb said. Silver was trading at $9.78 per ounce Tuesday, an increase of nearly $3 per ounce over the past year. Higher prices contribute to a more favorable climate for selling a mine, he said.

According to the company’s financial statements, the Galena and two adjoining silver properties have a book value of $12.8 million.